Dr Philip Dixon, director of the education union Association of Teachers and Lecturers (ATL) Cymru, said he was "surprised" by how big the drop in Welsh applications was, but he said it could be due to a "variety" of reasons.

He said some people could not afford to go to university in the current economic climate.

"But I also think youngsters are pretty savvy and they know the market and a lot of them are looking and thinking I could go to university for three years, come out with £40,000 of debt and won't be guaranteed a good, high paid job anyway," he said.

"They see their brothers and sisters and neighbours go to university and coming out and working in Tesco - not becoming lawyers or doctors.

I think some of them think they might as well try their hand in the job market nowDr Philip Dixon, Director of ATL Cymru union

"They can only get the sort of jobs they would get if they hadn't gone away.

"So I think some of them think they might as well try their hand in the job market now."

'Early data'

Stephanie Lloyds, president of the National Union of Students (NUS) Wales, said the figures looked worrying "at face value".

"But we need to be careful not to jump to conclusions," she said.

"A huge number of applications come in the final month, which is just days away from ending for most courses on 15 January. This downward trend could easily reverse.